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The distribution is regulated by IBF and is the same for all IBF-sanctioned tournaments. Whether it is fair or not is subjective. The question is whether it matters or not. I think most players do not play for prize money. If they do, then there will be a lot of hungry professionals. Most players are state-sponsored and should be well taken care of financially, and so, glory for country (and self) is more important than prize money. There are exceptions but not many.

It is the same situation as in table tennis (which is even poorer) but opposite that of tennis (where top players have tendency to skip Olympics, Davis Cup etc.)